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Ola gears up to re-enter grocery delivery space via ONDC

Upstox
By Upstox News Desk

2 min read | Updated on June 28, 2024, 17:05 IST

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SUMMARY

This is not the first time that Ola in entering the grocery delivery business. The company had started an online grocery store in Bengaluru in July 2015, following the launch of a food delivery application in March that year. However, both services were discontinued within nine months.

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In 2023, Ola joined ONDC to offer food delivery services.

The competition in the grocery delivery market is all set to heat up as Bhavish Aggarwal-led Ola is planning to enter the rapidly growing sector via the government-supported Open Network for Digital Commerce (ONGC) soon, according to a media report.

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The ride-hailing major is the second biggest buyer-side platform in the food category, followed by Magicpin, in the ONDC. It clocked between 15,000 and 20,000 food orders per day and accounts for a third of the demand in markets like Bengaluru and Delhi-NCR, Moneycontrol reported, citing sources.
"Ola enables more than 30% of ONDC food orders in Bengaluru and Delhi-NCR in its efforts to capture a significant market share of the online food ecosystem in the immediate term. Further, it is also leveraging its core expertise in the logistics domain by offering EV-based logistics services at a highly competitive price to smaller sellers on the ONDC network," a person was quoted as saying by Moneycontrol.

This is not the first time that Ola in entering the grocery delivery business. The company had started an online grocery store in Bengaluru in July 2015, following the launch of a food delivery application in March that year. However, both services were discontinued within nine months.

Also Read: Upcoming IPOs: Swiggy, Hyundai, Ola Electric among big companies likely to go public soon

The ride-hailing app launched Ola Dash, an online grocery delivery platform, in 2021. However, the service was stopped a year later.

In 2023, the company joined ONDC to offer food delivery services.

What is ONDC?

ONDC, or Open Network for Digital Commerce, is a government-backed network-centric model that allows buyers and sellers to transact across segments such as grocery, food order and delivery, mobility, and travel using any network-enabled application.

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About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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